Limiting Potential Regulatory Risk for a Merchant Energy Firm

The Situation

A merchant energy firm was concerned that a group of traders who recently joined their firm was exposing them to potential regulatory risk, even though no complaints had been received and the firm had not been contacted by regulators.

NERA's Role

NERA examined the trading activity of the group of traders, evaluating the group's trading and identifying any trading activity that could be viewed as suspect.

The Result

NERA suggested trading limits that could limit potential regulatory risk while still allowing the group to trade effectively.